Coquest

Your Daily Energy Report for November 20, 2024

Posted on 2024-11-20

Crude Oil

Crude Oil futures for December settled down -$.52 or -.749% at $68.87. Oil prices fell slightly on Wednesday as traders balanced rising geopolitical tensions with increasing U.S. oil supplies. Ukraine launched Western-made cruise missiles for the second time, escalating nuclear threats from Russia. At the same time, U.S. crude stockpiles grew by 545,000 barrels last week, surpassing market predictions. Gasoline inventories also increased by 2.05 million barrels, exceeding expectations, according to the Energy Information Administration. Recently, the oil market has faced pressure due to concerns over a possible surplus next year, driven by slower demand growth in China and record production levels, even as OPEC+ keeps output steady. Further boosting supply, Norway's Equinor said it had restored full output capacity at the Johan Sverdrup oilfield in the North Sea following a power outage.
 

Natural Gas

Natural Gas futures for December settled up $.195 or 6.504% at $3.193. Natural gas prices surged by over 6%, the highest level since June 11th, as colder temperatures expected at the end of November are predicted to increase heating demand. The latest short-term forecast (6-14 days) from the NOAA indicates that cooler-than-usual weather will stretch from the West Coast across much of the country, excluding the Gulf and East Coasts. Additionally, the volume of feedgas flowing to U.S. LNG export terminals has climbed to 14.07 billion cubic feet per day, marking the highest level since January 2024, compared to last week's 13.5 billion cubic feet per day. Exports to Mexico are also expected to reach 6.6 billion cubic feet per day, reflecting strong regional demand.


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